82% of consumers reported no change in interactions with their insurance provider following the Consumer Duty Act coming into force in July 2023, research from NTT DATA UK&I has revealed.
Insurance firms must prove compliance with the Duty at the first annual board reporting deadline on 31st July 2024, uncovering areas for improvement in the insurance industry’s adaptation to the new regulation.
Despite Consumer Duty’s aim being to ensure better customer care, NTT DATA UK&I’s research showed that, while 99% of consumers felt their insurance needs were met to some extent, 46% remained neutral or unhappy with their policies.
47% of insurers only reached out to their customers.
Customer trust was low, with 48% of consumers expressing doubt that their insurer had their best interests at heart.
Only 45% felt communications from their provider were somewhat tailored to their needs, with 40% finding them to be generic.
In addition, only 28% of consumers took out new policies in the past six months.
Deborah Bale, head of general insurance and broking at NTT DATA UK&I, said: “Our latest research paints a stark picture of an industry at a crossroads.
“The requirements outlined in the Consumer Duty Act require a conscious commitment, but they also offer an unprecedented opportunity to redefine what insurance means to consumers.
“The insurers who will lead the industry into its next chapter are those who can balance innovation with customer understanding.
“We’re looking at a future where data-driven personalisation and artificial intelligence (AI) aren’t just buzzwords, but the bedrock of rebuilding consumer trust.”
